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iShares MSCI China ETF (MCHI)

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  • Feb. 20, 2014, 2:23 AM
    • China's flash manufacturing PMI has tumbled to a seven-month low of 48.3 in February from 49.5 in January and missed consensus of 49.4.
    • Manufacturing Output Index dropped to 49.2 from 50.8.
    • The sub-indexes for new orders, new export orders and employment contracted.
    • "The building-up of disinflationary pressures implies that the underlying momentum for manufacturing growth could be weakening," says HSBC.
    • The faster contraction of PMI adds to other data that provides a mixed picture for China's economy, although the latest figures may have been hampered by the Chinese New Year.
    • The Shanghai Composite is -0.2%. (PR)
    • ETFs: FXI, PGJ, GXC, FXP, YINN, CYB, HAO, CNY, KWEB, TAO, ASHR, CHIQ, CHIX, DSUM, YANG, MCHI, CQQQ, PEK, QQQC, XPP, YAO, CHXX, FXCH, CHII, CHXF, YXI, ECNS, CHIE, CHIM, FCA, KFYP, CHLC, TCHI, CHNA
    | 6 Comments
  • Feb. 19, 2014, 9:55 AM
    • Forty-six percent of fund managers surveyed by BAML view a sharp slowdown in China as their biggest worry, up from 37% last month, and 26% in December.
    • "China is getting serious about deleveraging,” wrote SocGen earlier this week in a report nicely summarizing the conventional wisdom. “This should make economic growth slower, but more balanced. There is a risk, however, that deleveraging gets out of control and leads to a hard landing, in which growth slows to 2% Y/Y at the trough.”
    • Paul Chan, CIO for Asia ex-Japan at Invesco, isn't buying it, noting predictions of a hard landing in China have been going on for several years. “A hard landing in 2014 for a country with the largest foreign-exchange reserves and the lowest government debt-to-GDP among major economies is highly unlikely ... Based on trade, capital flows and liquidity data, investors so far are willing to fund loan growth in China.”
    • This just in: After a sizable decline to start off 2014, the Shanghai Composite has been headed higher for the last month, up 1.1% last night and now in the green for the year.
    • China ETFs: FXI, PGJ, GXC, FXP, YINN, HAO, KWEB, TAO, ASHR, CHIQ, CHIX, YANG, MCHI, CQQQ, PEK, QQQC, XPP, YAO, CHXX, CHII, CHXF, YXI, ECNS, CHIE, CHIM, FCA, KFYP, TCHI, CHNA
    | 1 Comment
  • Feb. 18, 2014, 4:24 AM
    • The People's Bank of China has drained $7.9B from the country's financial system by selling 48B yuan in repurchase contracts, the first such transaction since June.
    • The PBOC made the tightening move after weekend data showed that aggregate financing soared to a record 2.58T yuan ($425B) in January from 1.23T yuan in December despite the bank's attempts to rein in lending.
    • Meanwhile, foreign-direct investment in China climbed 16.1% to $10.76B in January in an indication of continued confidence in the country's economy despite recent cooling,
    • Separately, the difference in the reported economic output between the national government and China's 31 provinces fell to 10.7% in 2013 from 11% in 2012. The regions' combined output was 62.9T yuan, topping the national figure by a still substantial 6.06T yuan. "Regional authorities are showing more realistic data," says Credit Agricole's Dariusz Kowalczyk. The figures "may reflect the change in emphasis in the assessment of regional authorities away from growth towards other factors, which reduced the incentive for them to inflate the numbers."
    • The Shanghai Composite ends -0.8%, while a financial index drops 2.1%.
    • ETFs: FXI, PGJ, GXC, FXP, CYB, YINN, HAO, CNY, KWEB, TAO, ASHR, CHIQ, CHIX, DSUM, YANG, MCHI, CQQQ, PEK, QQQC, XPP, YAO, CHXX, FXCH, CHII, CHXF, YXI, ECNS, CHIE, CHIM, KFYP, FCA, CHLC, TCHI, CHNA
    | 1 Comment
  • Feb. 17, 2014, 3:42 AM
    • Chinese aggregate financing, the broadest measure of credit, grew to a record 2.58T yuan ($425B) in January from 1.23T yuan in December and topped forecasts of 1.9T yuan.
    • New local-currency lending soared to 1.32T yuan, the highest level since 2010, from 482.5B yuan in December and vs consensus of 1.1T yuan.
    • New trust loans, which are receiving much focus due to the risk of defaults, halved to 106.8B yuan from 210.8B yuan a year earlier.
    • The continued expansion in credit should help the economy keep its momentum, although it contrasts with the People's Bank of China's attempts to rein in the soaring debt and protect the stability of the financial system.
    • "The PBOC is trying to take the punch bowl away but the banks are continuing to lend and keep the party going," says Société Générale's Guy Stear.
    • M2, China's widest measure of money supply, +13.2% on year in January, in line, vs +13.6% in December.
    • The Shanghai Composite +0.9%. (PR)
    • ETFs: FXI, PGJ, GXC, FXP, CYB, YINN, HAO, CNY, KWEB, TAO, ASHR, CHIQ, CHIX, DSUM, YANG, MCHI, CQQQ, PEK, QQQC, XPP, YAO, CHXX, FXCH, CHII, CHXF, YXI, ECNS, CHIE, CHIM, KFYP, FCA, CHLC, TCHI, CHNA
    | 14 Comments
  • Feb. 12, 2014, 2:55 AM
    • China's exports accelerated to +10.6% on year in January from +4.3% in December and slayed consensus for a rise of just 2%.
    • Imports increased 10% vs +8.3% and +3%.
    • The trade surplus grew to $31.86B from $25.6B and vs forecasts for a drop to $23.65B.
    • However, analysts are skeptical: they had expected that the long Lunar New Year holiday would drag on trade last month, whilst other economic data has been disappointing. They warned that the trade figures, as in the past, could have been boosted by fake transactions by traders looking to avoid capital controls and bring cash into China.
    • "We find this strong level of export growth puzzling," says Nomura economist Zhang Zhiwei. "It is unclear to what extent the strong export data reflects the true strength in the economy." (PR)
    • The Shanghai Composite is +0.3%.
    • ETFs: FXI, PGJ, GXC, FXP, CYB, YINN, HAO, CNY, TAO, ASHR, CHIQ, CHIX, KWEB, DSUM, YANG, MCHI, CQQQ, PEK, QQQC, XPP, YAO, CHXX, FXCH, CHII, CHXF, YXI, ECNS, CHIE, CHIM, KFYP, FCA, CHLC, TCHI, CHNA
    | 9 Comments
  • Feb. 9, 2014, 1:24 AM
    • The People's Bank of China is prepared to tolerate "reasonable" volatility in money-market interest rates as it attempts to rein in soaring debt in the country.
    • While the PBOC will ensure "appropriate liquidity," it won't fund growth that is dependent on investment and debt.
    • "The massive borrowing and construction led by local governments in recent years" increased risks in the economy, the bank said. Such a model can "easily lead to rising debt and may squeeze credit for other players, especially small businesses."
    • The PBOC's remarks come after repurchase rates spiked to high levels at various points over the past several months, causing ructions in stock markets. The bank credited a particularly sharp rise in June with taming excessive expansion in money and credit.
    • ETFs: FXI, PGJ, GXC, FXP, CYB, YINN, HAO, CNY, TAO, CHIQ, ASHR, CHIX, KWEB, DSUM, YANG, MCHI, CQQQ, PEK, QQQC, XPP, YAO, CHXX, FXCH, CHII, CHXF, ECNS, YXI, CHIE, CHIM, KFYP, FCA, CHLC, CHNA, TCHI
    | 10 Comments
  • Feb. 3, 2014, 1:51 AM
    | Comment!
  • Jan. 30, 2014, 2:03 AM
    • Chinese manufacturing activity contracted for the first time in six months in January as HSBC PMI fell to 49.5 (flash 49.6) from 50.5 in December.
    • The growth of output eased to a marginal pace and jobs were cut at the fastest rate since March 2009, HSBC says, while there were "marked falls in input costs and output charges."
    • "A soft start to China's manufacturing sectors in 2014, partly due to weaker new export orders and slower domestic business activities," HSBC says.
    • The Shanghai Composite is -0.7%. (PR)
    • ETFs: FXI, PGJ, GXC, FXP, CYB, YINN, HAO, CNY, TAO, CHIQ, CHIX, KWEB, ASHR, DSUM, YANG, MCHI, PEK, CQQQ, QQQC, XPP, YAO, CHXX, FXCH, CHII, CHXF, ECNS, YXI, CHIE, CHIM, KFYP, FCA, TCHI, CHNA, CHLC
    | 1 Comment
  • Jan. 24, 2014, 4:23 AM
    • Asian shares have mostly fallen as investors have seemed to grow more fearful about the significance of poor Chinese manufacturing PMI data yesterday.
    • Investors have sought safe havens such as the yen - the USD-JPY is -0.3% at ¥103 - helping to send the Nikkei -1.9%.
    • "A correction could occur," says investment strategist Shane Oliver. "We have to expect more volatility. Shares are no longer dirt cheap, meaning the easy gains are behind us."
    • The once place where the PMI data didn't seem to to have an effect today was China, whose Shanghai Composite rose 0.6%. Stocks were partly boosted by money market rates falling again following a $42B+ injection of cash this week from the central bank ahead of the Lunar New Year. The seven-day repo rate dropped 77 bps to 4.61%.
    • "Bad news has been digested and liquidity has eased," says analyst Du Liang.
    • China ETFs: FXI, PGJ, GXC, FXP, CYB, YINN, HAO, CNY, TAO, CHIQ, ASHR, CHIX, YANG, MCHI, DSUM, PEK, KWEB, CQQQ, QQQC, XPP, YAO, CHXX, FXCH, CHII, CHXF, ECNS, CHIE, YXI, CHIM, KFYP, FCA, TCHI, CHLC, CHNA
    • Japan ETFs: DXJ, EWJ, FXY, YCS, JGBS, JGBD, DFJ, JYN, NKY, DBJP, EZJ, EWV, YCL, SCJ, DXJS, JSC, ITF, JGBL, JPP, JPNL, JGBT, JPNS, FJP, JGBB
    | Comment!
  • Jan. 23, 2014, 4:46 AM
    • Asian equities are mixed after preliminary data from HSBC showed that Chinese manufacturing activity contracted for the first time in six months.
    • "The weak flash PMI will inevitably inflame China slowdown worries, but this is only one data point," says strategist Linus Yip. "If more data start to also show a deeper slowdown, Beijing may be forced to stimulate in order to maintain a stable basis for growth that they need to execute reforms."
    • However, it was the Hang Seng that seemed to take the brunt of the losses, falling 1.4%, while Australia's S&P/ASX 200 dropped 1.1%.
    • The Shanghai composite closed -0.5%, with the negative mood perhaps offset by the People's Bank of China conducting 120B yuan ($19.8B) of 21-day reverse-repurchase agreements as it seeks to further defend against a credit crunch.
    • Elsewhere in Asia, Japan's Nikkei closed -0.8% and India's Sensex is +0.15%.
    • ETFs: FXI, EWA, EWH, PGJ, GXC, FXP, HAO, YINN, TAO, CHIQ, ASHR, CHIX, YANG, MCHI, PEK, KWEB, CQQQ, QQQC, XPP, AUSE, YAO, CHXX, CHII, CHXF, ECNS, CHIE, YXI, CHIM, EWHS, FCHI, KFYP, FCA, TCHI, CHNA, FHK, FAUS
    | 2 Comments
  • Jan. 22, 2014, 9:52 PM
    | 3 Comments
  • Jan. 22, 2014, 2:58 PM
    • So says the country's Beige Book - a quarterly survey of Chinese businesses and banks. Banks have money to lend, but "fewer and fewer firms are doing any borrowing ... credit is largely being siphoned off by a privileged elite." As the pointed remark might indicate, this Beige Book is not a creature of Beijing, but instead a private effort.
    • "Bankers and the government may insist the credit spigot remains open, but it is not open for most and liquidity is not financing genuinely new economic activity.”
    • China-related ETFs: FXI, PGJ, GXC, FXP, CYB, HAO, YINN, CNY, TAO, CHIQ, CHIX, ASHR, YANG, MCHI, PEK, DSUM, KWEB, CQQQ, QQQC, XPP, YAO, CHXX, CHII, FXCH, CHXF, ECNS, CHIE, YXI, CHIM, KFYP, FCA, TCHI, CHLC, CHNA, EWH
    | 5 Comments
  • Jan. 22, 2014, 5:03 AM
    • Chinese shares led Asian shares higher, with the Shanghai Composite rising 2.2% as stocks built on yesterday's gains following the injection of liquidity into money markets by the People's Bank of China in order to avert a cash crunch. The PBOC is expected to add more funds in operations tomorrow.
    • "The cyclicals and the blue chips are leading the rebound today, which usually points at policy relief," says analyst Cao Xuefeng. "It's more a relief rally at this point."
    • In Japan, the Nikkei rose 0.2% after the BOJ again maintained its ultra-loose monetary policy as is.
    • Elsehwere, Hang Seng +0.05%, India +0.4%.
    • ETFs: FXI, PGJ, GXC, FXP, YINN, HAO, CYB, CNY, TAO, CHIQ, CHIX, ASHR, YANG, MCHI, PEK, KWEB, DSUM, CQQQ, QQQC, XPP, YAO, CHXX, CHII, FXCH, CHXF, ECNS, CHIE, YXI, CHIM, KFYP, FCA, TCHI, CHLC, CHNA
    | Comment!
  • Jan. 21, 2014, 3:44 PM
    • The db X-trackers Harvest China ETF (ASHR) has cut fees 25%, lowering the expense ratio from 1.08% to 0.82%.
    • In a statement earlier this week, Martin Kremenstein, head of Passive Asset Management for Deutsche Asset & Wealth Management Americas, stated that "the early success of the ASHR ETF allows us to pass along the cost savings to investors through this arrangement".
    • Even with this rate decrease, the other A-Shares ETFs on the market, Market Vectors China ETF (PEK) and PowerShares China A-Share Portfolio ETF (CHNA), still feature lower expense ratios, but neither offer the same direct exposure ASHR does.
    • Other China ETFs: FXI, PGJ, GXC, FXP, YINN, YANG, MCHI, XPP, YAO, CHXF, YXI, FCA, TCHI
    | 1 Comment
  • Jan. 21, 2014, 3:36 AM
    • Having surged 153 bps yesterday, China's seven-day repurchase rate fell 88 bps to 5.44% today after the People's Bank of China injected over 255B yuan ($42B) into the financial system and expanded a loan facility in order to meet demand for cash ahead of the Lunar New Year.
    • The PBOC's action helped the Shanghai Composite rise 0.9% and the Hang Seng 0.5%.
    • Meanwhile, the shares of eight small companies jumped on their trading debuts today, prompting the Shenzhen Stock Exchange to warn about "blindly" speculating in IPOs. The stock moves highlight the demand for new listings following the end of a year-long moratorium on IPOs.
    • ETFs: FXI, PGJ, GXC, FXP, YINN, HAO, CYB, CNY, TAO, CHIQ, CHIX, ASHR, YANG, MCHI, PEK, CQQQ, KWEB, DSUM, QQQC, XPP, YAO, CHXX, CHII, FXCH, CHXF, ECNS, CHIE, YXI, CHIM, KFYP, FCA, TCHI, CHLC, CHNA
    | Comment!
  • Jan. 20, 2014, 2:08 AM
    • Chinese GDP slowed to +7.7% on year in Q4 from +7.8% in Q3 but topped consensus of +7.6%.
    • On quarter, GDP +1.8% vs +2.2% and +2%.
    • 2013 GDP +7.7%, as in 2012.
    • Industrial production +9.7% on year in December vs +10% in November and forecasts of +9.8%.
    • Retail sales +13.6% +13.7% and +13.6%.
    • Urban fixed-asset investment +19.6% vs +19.9% and +19.8%.
    • The value of new homes sold jumped 27% in 2013 to 6.8T yuan ($1.1T), the first time the figure has passed $1T (see also).
    • The slowdown in growth comes as the Chinese government starts to implement a major reform program aimed at rebalancing the economy away from heavy industry and exports more towards economic liberalism and consumption while at the same time trying to cool a sizzling housing sector and reining in soaring debt.
    • "Urbanization and investment demand are leading to rising sales volumes, while prices continue to gain," says economist Dariusz Kowalczyk. "China's growth remains heavily dependent on the real estate market."
    • Growth has been "fairly resilient," says SocGen economist Yao Wei. "It is more of the outlook that we worry about, especially with the financial risk in the system."
    • The Shanghai Composite is -0.7% and the Hang Seng is -0.8%.
    • ETFs: FXI, PGJ, GXC, FXP, HAO, YINN, CYB, CNY, TAO, CHIQ, CHIX, ASHR, YANG, MCHI, PEK, CQQQ, KWEB, DSUM, QQQC, XPP, YAO, CHXX, CHII, FXCH, CHXF, ECNS, YXI, CHIM, CHIE, KFYP, FCA, TCHI, CHLC, CHNA
    | 17 Comments
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MCHI Description
The iShares MSCI China Index Fund seeks investment results that correspond generally to the price and yield performance, before fees and expenses, of the MSCI China Index.
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Country: China
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